Japan says weak yen won't be on G7 agenda

Friday, May 10, 2013 - 01:47

May 10 - Group of Seven Finance ministers arrive at a stately home on the outskirts of London to discuss whether central banks can do more to bolster the fragile global recovery. Kirsty Basset reports.

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Finance ministers of the world's most powerful economies gathering together... for more talks. This time at a stately house in Buckinghamshire, outside London. It's only been three weeks since they last met to discuss the world's financial woes, at the IMF in Washington. Expectations of much being achieved are low. Joe Rundle is head of trading at ETX Capital. (SOUNDBITE)(ENGLISH) JOE RUNDLE, HEAD OF TRADING AT ETX CAPITAL SAYING: "Really it's just the same old meeting probably discussing the same thing and they're not really going to do any action and that's what we've seen for the last year." So what might actually be discussed? IMF chief Christine Lagarde. (SOUNDBITE)(ENGLISH) IMF MANAGING DIRECTOR CHRISTINE LAGARDE SAYING: "I'm certainly looking forward to an excellent G7 meeting. Good discussions on the recovery and moving from a three speed recovery to full speed recovery. And lovely hospitality.." Earlier British Finance Minister George Osborne said talks are likely to focus on what central banks can do to boost global growth. But many believe central banks don't have much ammunition left - and need to look for new ideas. (SOUNDBITE)(ENGLISH) JOE RUNDLE, HEAD OF TRADING AT ETX CAPITAL SAYING: "They've cut interest rates as much as they can go. I think the U.S., the Fed have been incredibly proactive and I think the ECB must take a leaf out of their book. They actually really need to do something other than a token interest rate cut and I think there could be calls for more QE from the Bank of England." And as the yen hit a four year low against the dollar on Friday, Japan insisted its tumbling currency wouldn't be a hot topic of conversation. But concerns in some camps about a looming currency war ensure it almost certainly will be. Many worry Japan is engineering an export-led recovery, with growth coming at the expense of other regions like Europe.

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